Kerry Properties profit rose 251% YoY to $3.77b in H1 2021

Its contracted sales reached $8.19b, which is 61% of its sales target for the year. 

Kerry Properties Limited reported a 251% year-on-year (YoY) surge in profit attributable to shareholders during the first half to $3.77b from $1.1b in the same period last year.

The group’s consolidated revenue increased 63% YoY in the first half to $6.37b, whilst the underlying profit rose 113% YoY to $2.36b.

Meanwhile, it achieved contracted sales of $8.19b during the period, which is 61% of the 2021 full-year sales target, with Hong Kong reaching $2.02b, or 36% of Hong Kong’s full-year sales target and Mainland achieving 78% of its full-year sales target of $6.17b.

The Hong Kong Property Division posted revenue of $2.66b during the first six months from $1.54b in the same period last year.

“The group’s contracted sales in Hong Kong accelerated in the second quarter as market sentiment improved, helping to position Hong Kong Property Division ahead for a busy second half 2021 launch schedule with LA MARINA, the first of two Wong Chuk Hang seafront MTR transit-oriented residential projects in the third quarter; and No. 3 Lung Kui Road, Beacon Hill, the second phase of our high-end harbour view project Mont Rouge in the fourth quarter,” it said.

The Mainland Property Division saw a 56% YoY increase to $3.71b from $2.38b in the first half of 2020.

“The Mainland was able to benefit from being one of the earliest markets to start recovering from the pandemic that held back economic activities for most of 2020, and the group was able to capture the opportunities arising from the downturn,” it said.

Kerry also posted a 14% YoY increase in its property rental revenue to $2.66b, whilst the investment properties in Hong Kong was at $656m in the first half, similar to the same period last year and Mainland reported a 20% YoY increase to $1.99b.

Kerry holds a “positive short-to-medium term” outlook for its operations in Hong Kong, noting that they see Hong Kong growing with the eventual opening of borders with the Mainland and its “critical financial hub status” for the Mainland and its companies.

It is also “positive” about China’s growth and they will be looking for opportunities there to develop sustainable projects in core cities the company is focused on.